Led by Significant Increase in Oil and Natural Gas Liquid Sales from Prior Acquisition of Silver Fuels Delhi, LLC

LEHI, UT / ACCESSWIRE / August 1, 2023 / Vivakor, Inc. (NASDAQ:VIVK) ("Vivakor" or the "Company"), a socially responsible operator, acquirer and developer of clean energy technologies and environmental solutions, today announced financial and operational results for the first quarter ended March 31, 2023.

Key Financial Highlights for First Quarter Ended March 31, 2023 (year-over-year):

• Revenue increased to $15.5 million
• Gross profit increased to $1.5 million
• Gross margin of 9.7%
• Operating loss decreased 40% (year over year) to $1.1 million (included $1.4 million of non-cash or one-time expenses)
• Net loss increased 322% year over year to $2.5 million
• Cash balance of $2.7 million
• Total assets of $74.7 million

Management Commentary

Vivakor Chairman and Chief Executive Officer James Ballengee commented, "Our first quarter was in-line with our internal expectations, as our crude oil gathering, storage and transportation facilities continued to perform well. One of our facilities sells crude oil in amounts up to 60,000 barrels per month under agreements with a large publicly traded energy company. A different facility owns a 120,000-barrel crude oil storage tank located near Colorado City, Texas. The storage tank is presently connected to the Lotus pipeline system and we are currently moving forward with our plans to further connect the tank to other major pipeline systems. Our contaminated soil remediation services operations are being re-positioned to focus on delivering the optimal return on investment for each of our Remediation Processing Centers. We are currently focusing our soil remediation efforts on our project in Kuwait and our upcoming project in the Houston, Texas area. We look forward to sharing our progress with existing and prospective new shareholders over the coming months."

Update on Land Lease Agreement in Houston, Texas

On December 16, 2022, the Company's subsidiary, Vivaventures Remediation Corp., entered into a Land Lease Agreement with W&P Development Corporation, under which Vivaventures Remediation Corp. agreed to lease approximately 3.5 acres of land in Houston, Texas (commonly known as the San Jacinto River & Rail Park, 18511 Beaumont Highway, Houston, Texas). We plan to operate a first-of-its-kind facility combining one of our proprietary RPC machines and truck wash plant on the property resulting in a one-stop option for the disposal and cleanup of tank bottom sludge.

On May 23, 2023, our subsidiary White Claw Colorado City, LLC supplemented an existing Master Agreement with Maxus Capital Group, LLC under which Maxus agreed to finance the build-out of the new facility located at the San Jacinto River & Rail Park. We expect Maxus to fund approximately $2.2 million to finance the continuation of the build-out of the Houston location in the form of a finance lease for the wash plant.

Financial Results for First Quarter Ended March 31, 2023

• Revenue for the three months ended March 31, 2023 increased to $15.5 million, compared to $0 for the three months ended March 31, 2022. This increase in revenue is primarily attributed to our oil and natural gas liquid sales which have been realized through the operations from Silver Fuels Delhi, LLC, which was acquired through our business combination, which closed on August 1, 2022.
• Gross profit for the three months ended March 31, 2023 increased to $1.5 million, compared to $0 for the three months ended March 31, 2022. The resulting gross margin for the three months ended March 31, 2023 was 9.7%, compared to 0.0% for the three months ended March 31, 2022.
• Operating loss for the three months ended March 31, 2023 decreased $0.8 million, or 40%, to $1.1 million, compared to $1.9 million for the three months ended March 31, 2022. Operating loss of the three months ended March 31, 2023 included non-cash and one-time expenses totaling $1.4 million, comprised of $0.8 million depreciation and amortization and $0.6 million compensation, compared to a total of $0.9 million, comprised of $0.4 million depreciation and amortization, $0.5 million in stock-based compensation for the three months ended March 31, 2022.
• Net loss for the three months ended March 31, 2023 increased $1.9 million, or 322%, to $2.5 million, compared to $0.6 million for the three months ended March 31, 2022. The resulting net loss per share of common stock loss for the three months ended March 31, 2023, was ($0.14), compared to a net loss per share of common stock of ($0.04) for the three months ended March 31, 2022.
• Cash and cash equivalents totaled $2.7 million at March 31, 2023.

About Vivakor, Inc.

Vivakor, Inc. (NASDAQ:VIVK), is a clean energy technology company focused on the oil remediation and natural resources sectors. Vivakor's corporate mission is to create, acquire, accumulate, and operate distinct assets, intellectual properties, and exceptional technologies. Its Silver Fuels Delhi, LLC, and White Claw Colorado City, LLC subsidiaries include crude oil gathering, storage, and transportation facilities, which feature long-term ten year take-or-pay contracts.

The Company's patented Remediation Processing Centers allows for the environmentally-friendly recovery of bitumen (heavy crude) and other hydrocarbons from the remediation of contaminated soils. It is believed to be the only remediation system that can clean soils with more than 5% by weight oil contamination while recovering the oil and leaving the soil fully viable for reuse. Its Remediation Processing Centers currently focus on extraction from shallow, oil-laden sands, along with generating petroleum-based remediation projects in Kuwait and in Houston, Texas.

For more information, please visit our website: http://vivakor.com

Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including economic slowdown affecting companies, our ability to successfully develop products, rapid change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in Vivakor's filings with the Securities and Exchange Commission, which factors may be incorporated herein by reference. Forward-looking statements may be identified but not limited by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," or "continue" and variations or similar expressions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Investors Contact:
P:949-281-2606
info@vivakor.com

ClearThink
nyc@clearthink.capital

SOURCE: Vivakor, Inc.